THE DELHI CO-OPERATIVE SOCIETIES ACT, 1972                                                                                                                                       

_______ 

ARRANGEMENT OF SECTIONS                                                                                                            

________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 

2. Definitions. 

CHAPTER II 

REGISTRATION OF CO-OPERATIVE SOCIETIES 

3. Registrar. 

4. Societies which may be registered. 

5. Restrictions on registration. 

6. Restrictions on holding of shares. 

7. Application for registration. 

8. Power of the Registrar to decide certain questions. 

9. Registration. 

10. Registration certificate. 

11. Amendment of bye-laws of a co-operative society. 

12. When amendments of bye-laws come into force. 

13. Change of name. 

14. Change of liability. 

15. Amalgamation, transfer of assets and liabilities and division of co-operative societies. 

16. Power to direct amalgamation, division and reorganisation in public interest etc. 

17. Registrar to prepare scheme of amalgamation of co-operative bank in certain cases. 

18. Liability of a co-operative bank to the Deposit Insurance Corporation. 

19. Cancellation of registration certificates of co-operative societies in certain cases. 

MEMBERS OF CO-OPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES 

CHAPTER III 

20. Persons who may become members. 

21. Nominal or associate members. 

22. Member not to exercise rights till due payment made. 

23. Votes of members. 

24. Manner of exercising vote. 

25. Restriction on transfer of shares or interest. 

26. Transfer of interest on death of members. 

1 

 
SECTIONS 

27. Liability of past member and estate of deceased member. 

CHAPTER IV 

MANAGEMENT OF CO-OPERATIVE SOCIETIES 

28. Final authority in a co-operative society. 

29. Annual general meeting. 

30. Special general meeting. 

31. Election and nomination of members of committees. 

32. Supersession of committee. 

33. Securing possession of records, etc. 

34. Acts of co-operative societies not to be invalidated by certain defects. 

CHAPTER V 

PRIVILEGES OF CO-OPERATIVE SOCIETIES 

35. Co-operative societies to be bodies corporate. 

36. First charge of co-operative society on certain assets. 

37. Charge on immovable property of members borrowing loans from certain societies. 

38. Charge and set-off in respect of share or contribution or interest of members.               

39. Share or contribution or interest not liable to attachment. 

40. Register of members. 

41. Admissibility of copy of entry as evidence. 

42. Exemption from compulsory registration of instruments. 

43. Exemption from certain taxes, fees and duties. 

44. Deduction from salary to meet co-operative society’s claim in certain cases. 

45. Other forms of State aid to co-operative societies. 

CHAPTER VI 

PROPERTIES AND FUNDS OF CO-OPERATIVE SOCIETIES 

46. Funds not to be divided by way of profit. 

47. Contribution to charitable purpose. 

48. Contribution to Co-operative Education Fund. 

49. Investment of funds. 

50. Restrictions on loans. 

51. Restrictions on borrowings. 

52. Restrictions on other transactions with non-members. 

2 

 
 
 
 
CHAPTER VII 

AUDIT, INQUIRY, INSPECTION AND SURCHARGE 

SECTIONS  

53. Audit. 

54. Inspection of societies. 

55. Inquiry by Registrar. 

56. Inspection of books of indebted societies. 

57. Costs of inquiry. 

58. Recovery of costs. 

59. Surcharge. 

CHAPTER VIII 

SETTLEMENT OF DISPUTES 

60. Disputes which may be referred to arbitration. 

61. Reference of disputes to arbitration. 

62. Power of financing bank to proceed.  

CHAPTER IX 

WINDING UP OF CO-OPERATIVE SOCIETIES 

63. Winding up of co-operative societies. 

64. Winding up of co-operative banks at the direction of the Reserve Bank. 

65. Reimbursement to the Deposit Insurance Corporation by the liquidator. 

66. Liquidator. 

67. Powers of liquidator. 

68. Priority of contributions assessed by liquidator. 

69. Power of Registrar to cancel registration of a co-operative society. 

CHAPTER X 

EXECUTION OF AWARDS, DECREES, ORDERS AND DECISIONS 

70. Enforcement of charge. 

71. Execution of orders, etc. 

72. Execution of orders of liquidator. 

73. Attachment before award. 

74. Registrar or person empowered by him to be civil court for certain purposes. 

75. Recovery of sums due to Government. 

CHAPTER XI 

APPEALS AND REVISION 

76. Appeals. 

77. No appeal or revision in certain cases. 

78. Delhi Co-operative Tribunal. 

3 

 
SECTIONS  

79. Review of orders of Tribunal. 

80. Revision. 

81. Interlocutory orders. 

CHAPTER XII 

OFFENCES AND PENALTIES 

82. Offences. 

83. Cognizance of offence. 

84. Address of societies. 

85. Copy of Act, rules and bye-laws, etc., to be open to inspection. 

86. Prohibition against the use of the word “co-operative”. 

87. Power to exempt societies from conditions as to registration. 

88. Power to exempt co-operative societies from provisions of the Act. 

89. Liquidator to be public servant. 

90. Notice necessary in suits. 

91. Companies Act not to apply. 

92. Saving of existing societies. 

93. Bar of jurisdiction of courts. 

94. Powers of civil court. 

95. Indemnity. 

96.  Qualifications,  remuneration  and  other  conditions  of  service  of  employees  of  co-operative 

societies. 

97. Rules. 

98. Repeal and savings. 

4 

 
 
 
THE DELHI CO-OPERATIVE SOCIETIES ACT, 1972 

ACT NO. 35 OF 1972 

An Act to consolidate and amend the law relating to co-operative societies in the Union territory 

of Delhi. 

BE it enacted by Parliament in the Twenty-third Year of the Republic of India as follows:— 

[17th June, 1972.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.—(1)  This  Act  may  be  called  the  Delhi  Co-operative 

Societies Act, 1972.  

(2) It extends to the whole of the Union territory of Delhi. 
(3) It shall come into force on such date1 as the Lieutenant-Governor may, by notification in the Delhi 

Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “bye-laws” means the registered bye-laws for the time being in force, and includes registered 

amendments of such bye-laws; 

(b) “committee” means the governing body of a co-operative society, by whatever name called, to 

which the management of the affairs of the society is entrusted; 

(c) “co-operative bank” shall have the same meaning as is assigned to it in the Deposit Insurance 

Corporation Act, 1961 (47 of 1961); 

(d) “co-operative society” means a society registered or deemed to be registered under this Act; 

(e)  “co-operative  society  with  limited  liability”  means  a  co-operative  society  the  liability  of 
whose  members  is  limited  by  its  bye-laws  to  the amount,  if  any,  unpaid  on  the  shares  individually 
held by them or to such amount as they may individually undertake to contribute to the assets of the 
society, in the event of its being wound up; 

(f)  “co-operative  society  with  unlimited  liability”  means  a  co-operative  society  the  liability  of 
whose members is unlimited for the purpose of contributing jointly and severally to any deficiency in 
the assets of the society in the event of its being wound up; 

(g) “Deposit Insurance Corporation” means the Deposit Insurance Corporation established under 

section 3 of the Deposit Insurance Corporation Act, 1961 (47 of 1961); 

(h) “federal society” means a society— 

(a) not less than five members of which are themselves societies; and 

(b) in which the voting rights are so regulated that the members which are societies have not 

less than four-fifth of the total number of votes in the general meeting of such society; 

(i)  “financing  bank”  means  a  co-operative  society,  the  objects  of  which include  the  creation of 

funds to be lent to other co-operative societies; 

(j) “Lieutenant-Governor” means the administrator of the Union territory of Delhi appointed by 

the President under article 239 of the Constitution; 

1.  2nd  April,  1973,  vide  notification  No.  7(15)/65-73/coop/3613,  Delhi  Gazette,  Extraordinary,  Part  IV,  dated                   

16th March 1973. 

5 

 
 
 
 
                                                           
(k)  “member”  means  a  person  joining  in  the  application  for  the  registration  of  a  co-operative 
society and a person admitted to membership after such registration in accordance with this Act, the 
rules and the bye-laws, and includes a nominal and an associate member and the Central Government 
when it subscribes to the share capital of a society; 

(l)  “officer”  means  the  president,  vice-president,  chairman,  vice-chairman,  managing  director, 
secretary, manager, member of committee, treasurer, liquidator, administrator and includes any other 
person empowered under the rules or the bye-laws to give directions in regard to the business of a   
co-operative society; 

(m) “prescribed” means prescribed by rules; 

(n)  “Registrar”  means  a  person  appointed  to  perform  the  functions  of  the  Registrar  of                

Co-operative Societies under this Act, and includes any person appointed to assist the Registrar when 
exercising all or any of the powers of the Registrar; 

(o) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India 

Act, 1934 (2 of 1934); 

(p) “rules” means the rules made under this Act; 

(q) “Tribunal” means the Delhi Co-operative Tribunal constituted under section 78. 

CHAPTER II 

REGISTRATION OF CO-OPERATIVE SOCIETIES 

3.  Registrar.—(1)  The  Lieutenant-Governor  may  appoint  a  person  to  be  the  Registrar  of                 

Co-operative Societies for the Union territory of Delhi and may appoint other persons to assist him. 

(2)  The  Lieutenant-Governor  may,  by  general  or  special  order,  confer  on  any  person  appointed  to 

assist the Registrar all or any of the powers of the Registrar under this Act. 

(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under 

sub-section (2) subject to the general guidance, superintendence and control of the Registrar. 

(4) The Lieutenant-Governor may, by notification in the Delhi Gazette and subject to such conditions 
as  he  may  think  fit  to  impose,  confer  all  or  any  of  the  powers  of  the  Registrar  under  this  Act  on  any 
federal society, or an officer of such federal society; and every such federal society or officer on whom 
the  powers  of  the  Registrar  are  so  conferred  shall  exercise  such  powers  under  the  general  guidance, 
superintendence and control of the Registrar. 

4. Societies which may be registered.—(1) Subject to the provisions hereinafter contained, a society 
which  has  as  its  object  the  promotion  of  the  economic  interests  of  its  members  in  accordance  with          
co-operative  principles,  or  a  society  established  with  the  object  of  facilitating  the  operations  of  such  a 
society, may be registered under this Act with or without limited liability: 

Provided  that  no  society  shall  be  registered  if  it  is  likely  to  be  economically  unsound  or  the 

registration of which may have an adverse effect on development of co-operative movement: 

Provided further that, unless the Lieutenant-Governor by  general or special order otherwise directs, 

the liability of the society of which a member is a co-operative society shall be limited. 

(2) The word “limited” or its equivalent in any Indian language shall be the last word in the name of 

every society registered under this Act with limited liability. 

5.  Restrictions  on  registration.—No  society  other  than  a  federal  society  shall  be  registered  under 
this  Act  unless  it  consists  of  at  least  ten  persons  (each  of  such  persons  being  a  member  of  different 
family), who are qualified to be members under this Act and who reside in the area of operation of the 
society. 

6 

 
 
 
Explanation.—For  the  purposes  of  this  section  the  expression  “member  of  a  family”  means  wife, 
husband,  father,  mother,  grand-father,  grand-mother,  step-father,  step-mother,  son,  unmarried  daughter, 
unmarried  step-daughter,  step-son,  grand-son,  unmarried  grand-daughter,  unmarried  sister,  unmarried 
half-sister, brother, half-brother and wife of brother or half-brother. 

6.  Restrictions  on  holding  of  shares.—No  member  other  than  the  Central  Government  or  a           

co-operative  society  shall  hold  more  than  such  portion  of  the  share-capital  of  a  co-operative  society, 
subject to  a maximum of one-fifth, as may be prescribed or have or claim any  interest in the shares of 
such society exceeding ten thousand rupees, whichever is less. 

 7. Application for registration.—(1) For the purposes of registration, an application shall be made 

to the Registrar. 

(2) The application shall be signed,— 

(a) in the case of a society of which no member is a co-operative society, by at least ten persons 

qualified in accordance with the requirements of section 5; and 

(b)  in  the  case  of  a  society  of  which  a  member  is  a  co-operative  society,  by  a  duly  authorised 
person on behalf of every such society and where all the members of the society are not co-operative 
societies, by ten other members, or, when there are less than ten other members, by all of them. 

8. Power of the Registrar to decide certain questions.—Where any question arises whether for the 
purpose of this Act a person resides in the area of operation of a society or not, or whether a society is of 
same type as another society or of different type, the question shall be decided by the Registrar whose 
decision shall be final. 

9. Registration.—(1) If the Registrar is satisfied— 

(a) that the application complies with the provisions of this Act and the rules; 

(b) that the objects of the proposed society are in accordance with section 4; 

(c) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and 

(d)  that  the  proposed  society  has  reasonable  chances  of  success,  the  Registrar  may  register  the 

society and its bye-laws. 

(2)  When  the  Registrar  refuses  to  register  a  society,  he  shall  communicate  the  order  of  refusal, 

together with the reasons therefor, to such of the applicants as may be prescribed. 

(3)  The  application  for  registration  shall  be  disposed  of  by  the  Registrar  within  a  period  of  three 

months from the date of receipt thereof by him: 

Provided that if the Registrar is unable to dispose of the application within the aforesaid period, he 
shall make a report to the Lieutenant-Governor stating therein the reasons for his inability to do so, and 
the  Lieutenant-Governor  may  allow  him  further  time  not  exceeding  three  months  to  dispose  of  such 
application. 

10. Registration certificate.—Where a society is registered under this Act, the Registrar shall issue a 
certificate of registration signed by him, which shall be conclusive evidence that the co-operative society 
therein mentioned is duly registered under this Act. 

11. Amendment of bye-laws of a co-operative society.—(1) No amendment of any bye-laws of a 

co-operative society shall be valid unless such amendment has been registered under this Act. 

(2)  Every  proposal  for  such  amendment  shall  be  forwarded  to  the  Registrar  and  if  the  Registrar  is 

satisfied that the proposed amendment— 

(a) is not contrary to the provisions of this Act and the rules; 

(b) does not conflict with co-operative principles; and 

(c) will promote the economic interests of the members of the society, 

he may register the amendment. 

7 

 
(3)  The  Registrar  shall  forward  to  the  society  a  copy  of  the  registered  amendment  together  with  a 
certificate signed by him and such certificate shall be conclusive evidence that the amendment has been 
duly registered. 

(4) Where the Registrar refuses to register an amendment of the bye-laws of a co-operative society, he 
shall  communicate  the  order  of  refusal  together  with  the  reasons  therefor,  to  the  society  in  the  manner 
prescribed. 

12.  When  amendments  of  bye-laws  come  into  force.—An  amendment  of  the  bye-laws  of  a          

co-operative  society  shall,  unless  it  is  expressed  to  come  into  operation  on  a  particular  day,  come  into 
force on the day on which it is registered, 

13. Change of name.—(1) A co-operative society may, by an amendment of its bye-laws, change its 
name but such change shall not affect any right or obligation of the society or of any of its members or 
past members, and any legal proceedings pending  may be continued by or against the society under its 
new name. 

(2)  Where  a  co-operative  society  changes  its  name,  the  Registrar  shall  enter  the  new  name  on  the 
register  of  co-operative  societies  in  place  of  the  former  name  and  shall  amend  the  certificate  of 
registration accordingly. 

14.  Change  of  liability.—(1)  Subject  to  the  provisions  of  this  Act  and  the  rules,  a  co-operative 

society may, by an amendment of its bye-laws, change the form or extent of its liability. 

(2) When a co-operative society has passed a resolution to change the form or extent of its liability, it 
shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-law or 
contract  to  the  contrary,  any  member  or  creditor  shall,  during  a  period  of  one  month  from  the  date  of 
service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case 
may be. 

(3)  Any  member  or  creditor  who  does  not  exercise  his  option  within  the  period  specified  in            

sub-section (2) shall be deemed to have assented to the change. 

(4) An amendment of a bye-law of a co-operative society changing the form or extent of its liability 

shall not be registered or take effect until either— 

(a) the assent thereto of all members and creditors has been obtained; or 

(b)  all  claims  of  members  and  creditors  who  exercise  the  option  referred  to  in  sub-section  (2) 

within the period specified therein have been met in full. 

15. Amalgamation, transfer of assets and liabilities and division of co-operative societies.—(1) A 
co-operative  society  may,  with  the  previous  approval  of  the  Registrar  and  by  a  resolution  passed  by  a        
two-thirds majority of the members present and voting at a general meeting of the society,— 

(a) transfer its assets and liabilities in whole or in part to any other co-operative society; 

(b) divide itself into two or more co-operative societies. 

(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a 
resolution passed by a two-thirds majority of the members present and voting at a general meeting of each 
such society, amalgamate themselves and form a new co-operative society. 

(3) The resolution of a co-operative society under sub-section (1) or sub-section (2) shall contain all 

particulars of the transfer, division or amalgamation, as the case may be: 

Provided that in the case of a co-operative bank, the Registrar shall not accord approval to any such 

resolution without the previous sanction in writing of the Reserve Bank. 

(4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing 
to  all  its  members  and  creditors  and,  notwithstanding  any  bye-laws  or  contract  to  the  contrary,  any 
member or creditor shall, during the period of one month of the date of service of the notice upon him, 
have the option of withdrawing his shares, deposits or loans, as the case may be. 

8 

 
(5)  Any  member  or  creditor  who  does  not  exercise  his  option  within  the  period  specified  in             

sub-section (4) shall be deemed to have assented to the proposals contained in the resolution. 

(6) A resolution passed by a co-operative society under this section shall not take effect until, either— 

(a) the assent thereto of all the members and creditors has been obtained; or 

(b)  all  claims  of  members  and  creditors  who  exercise  the  option  referred  to  in  sub-section  (4) 

within the period specified therein have been met in full. 

(7) Where a resolution passed by a co-operative society under this section involves the transfer of any 
assets  and  liabilities,  the  resolution  shall,  notwithstanding  anything  contained  in  any  law  for  the  time 
being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any 
further assurance. 

16. Power to direct amalgamation, division and reorganisation in public interest etc.—(1) Where 
the  Registrar  is  satisfied  that  it  is  essential  in  the  public  interest,  or  in  the  interest  of  the  co-operative 
movement, or for the purpose of securing the proper management of any co-operative society that two or 
more co-operative societies should be amalgamated or any co-operative society should be divided to form 
two or more co-operative societies or should be reorganised, then, notwithstanding anything contained in 
section  15,  but  subject  to  the  provisions  of  this  section,  the  Registrar  may,  by  order,  provide  for  the 
amalgamation,  division  or  reorganisation  of  these  co-operative  societies  into  a  single  society  or  into 
societies with such constitution, property rights, interests and authorities and such liabilities, duties and 
obligations as may be specified in the order: 

Provided that no such order of amalgamation, division or reorganisation in respect of a co-operative 

bank shall be made without the previous sanction in writing of the Reserve Bank. 

(2) No order shall be made under this section, unless— 

(a) a copy of the proposed order has been sent in draft to the co-operative society or each of the 

co-operative societies concerned; and 

(b) the Registrar has considered and made such modifications in the draft order as may seem to 
him  desirable in  the  light of  any  suggestions  and  objections  which  may  be  received  by  him  within 
such period (not being less than two months from the date on which a copy of the order aforesaid is 
received by the society or societies, as the case may be), as the Registrar may fix in that behalf, either 
from  the  society  or  from  any  of  the  societies  concerned  or  from  any  member  or  class  of  members 
thereof or from any creditor or class of creditors thereof. 

(3)  The  order  referred  to  in  sub-section  (1)  may  contain  such  incidental,  consequential  and 
supplemental  provisions  as  may,  in  the  opinion  of  the  Registrar,  be  necessary  to  give  effect  to  the 
amalgamation, division or reorganisation, as the case may be. 

(4)  Every  member  or  creditor  of  each  of  the  co-operative  societies  to  be  amalgamated,  divided  or 
reorganised,  who  has  objected  to  the  scheme  of  amalgamation,  division  or  reorganisation,  within  the 
period  specified,  shall  be  entitled  to  receive,  on  the  issue  of  the  order  of  amalgamation,  division  or 
reorganisation, his share or interest, if he be a member, and the amount in satisfaction of his dues, if he be 
a creditor. 

(5) On the issue of an order under sub-section (1), the provisions of sub-sections (2), (3) and (4) of 
section  19  shall  apply  to  the  co-operative  societies  so  amalgamated,  divided  or  reorganised  as  if  the 
amalgamation, division or reorganisation had been made under section 15. 

17. Registrar to prepare scheme of amalgamation of co-operative bank in certain cases.—When 
an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of 
the Banking Regulation Act, 1949 (10 of 1949), in respect of a co-operative bank, the Registrar, with the 
previous  approval  of  the  Reserve  Bank  in  writing,  may,  during  the  period  of  moratorium,  prepare  a 
scheme— 

(a) for the reorganisation of the co-operative bank; or 

(b) for the amalgamation of the co-operative bank with any other co-operative bank. 

9 

 
18.  Liability  of  a  co-operative  bank  to  the  Deposit  Insurance  Corporation.—Notwithstanding 
anything contained in sections 15 and 16 or any other provision of this Act, where a co-operative bank, 
being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961 (47 of 1961), is 
amalgamated  or  reorganised  and  the  Deposit  Insurance  Corporation  has  become  liable  to  pay  to  the 
depositors of the insured bank under sub-section (2) of section 16 of that Act, the bank with which such 
insured  bank  is  amalgamated,  or the new  co-operative  bank  formed  after  such amalgamation,  or  as the 
case  may  be,  the  insured  bank  or  transferee  bank  shall  be  under  an  obligation  to  repay  to  the  Deposit 
Insurance Corporation in the circumstances, to the extent of and in the manner referred to in section 21 of 
the Deposit Insurance Corporation Act, 1961 (47 of 1961). 

19. Cancellation of registration certificates of co-operative societies in certain cases.—(1) Where 
the  whole  of  the  assets  and  liabilities  of  a  co-operative  society  are  transferred  to  another  co-operative 
society  in  accordance  with  the  provisions  of  section  15  or  section  16,  the  registration  of  the  first 
mentioned  co-operative  society  shall  stand  cancelled  and  the  society  shall  be  deemed  to  have  been 
dissolved and shall cease to exist as a corporate body. 

(2)  Where  two  or  more  co-operative  societies  are  amalgamated  into  a  new  co-operative  society  in 
accordance with the provisions of section 15 or section 16, the registration of each of the amalgamating 
societies shall stand cancelled on the registration of the new society, and each society shall be deemed to 
have been dissolved and shall cease to exist as a corporate body. 

(3) Where a co-operative society divides itself into two or more co-operative societies in accordance 
with  the  provisions  of  section  15  or  is  divided  by  the  Registrar  in  accordance  with  the  provisions  of 
section 16, the registration of that society shall stand cancelled on the registration of the new societies, 
and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body. 

(4)  The  amalgamation  and  splitting  of  co-operative  societies  shall  not  in  any  manner  whatsoever 
affect  any  right  or  obligation  of  the  resulting  co-operative  society  or  societies  or  render  defective  any 
legal proceedings by or against the co-operative society or societies, and any legal proceedings that might 
have been continued or commenced by or against the co-operative society or societies, as the case may 
be,  before  the  amalgamation  or  splitting,  may  be  continued  or  commenced  by  or  against  the  resulting    
co-operative society or societies. 

(5)  Where  a  co-operative  society  has  not  commenced  business  within  a  reasonable  time  of  its 
registration or has ceased to function or if the Registrar is satisfied, after making such inquiry as he thinks 
fit, that the society no longer has genuinely as its objects one or more of the objects specified in section 4 
and that its registration ought in the interests of the general public be cancelled, he shall make an order 
cancelling  the  registration  of  the  co-operative  society.  The  co-operative  society  shall,  from  the  date  of 
such order of cancellation, be deemed to be dissolved and shall cease to exist as a corporate body. 

MEMBERS OF CO-OPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES 

CHAPTER III 

20.  Persons  who  may  become  members.—(1)  No  person  shall  be  admitted  as  member  of  a           

co-operative society except the following, namely:— 

(a)  an 

individual  competent 

to  contract  under  section  11  of 

the  Indian  Contract                               

Act, 1872 (9 of 1872); 

(b) any other co-operative society; 

(c) the Central Government; and 

(d)  such  class  or  classes  of  persons  or  association  of  persons  as  may  be  notified  by  the 

Lieutenant-Governor in this behalf: 

Provided  that  the  provisions  of  clause  (a)  shall  not  apply  to  an  individual  seeking  admission  to  a 

society exclusively formed for the benefit of students of a school or college. 

10 

 
 
 
(2)  Notwithstanding  anything  contained  in  sub-section  (1),  the  Lieutenant-Governor  may,  having 
regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with 
the objects of any society or class of societies, by general or special order, published in the Delhi Gazette, 
declare  that  any  person  or  class  of  persons  engaged  in  or  carrying  on  any  profession,  business  or 
employment shall be disqualified from being admitted, or for continuing, as members or shall be eligible 
for  membership  only  to  a  limited  extent  of  any  specified  society  or  class  of  societies,  so  long  as  such 
person is or such persons are engaged in or carrying on that profession, business or employment, as the 
case may be. 

21.  Nominal  or  associate  members.—(1)  Notwithstanding  anything  contained  in  clause  (d)  of 
section 20, a co-operative society may admit any person as a nominal or associate member in accordance 
with its bye-laws. 

(2) A nominal or associate member shall not be entitled to any share in any form whatsoever, in the 

assets or profits of the co-operative society. 

(3) Save as provided in this section, a nominal or associate member shall have such privileges and 
rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of 
the society. 

22. Member not to exercise rights till due payment made.—No member of a co-operative society 
shall  exercise  the  rights  of  a  member  unless  he  has  made  such  payment  to  the  society  in  respect  of 
membership or has acquired such interest in the society as may be specified in the bye-laws. 

23. Votes of members.—Every member of a co-operative society shall have one vote in the affairs of 

the society: 

Provided that— 

(a) in the case of an equality of votes, the chairman shall have a second or casting vote; 

(b) a nominal or associate member shall not have the right of vote; 

(c)  where  the  Central  Government  is  a  member  of  the  co-operative  society,  each  person 

nominated by the Central Government on the committee shall have one vote. 

24. Manner of exercising vote.—(1) Every member of a co-operative society shall exercise his vote 

in person and no member shall be permitted to vote by proxy. 

(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member 
of another co-operative society, may, subject to the rules, appoint one of its members to vote on its behalf 
in the affairs of that other society. 

25. Restriction on transfer of shares or interest.—The transfer of the share or interest of a member 
in the capital of a co-operative society shall be subject to such conditions as to maximum holding as are 
specified in section 6. 

26.  Transfer  of  interest  on  death  of  members.—(1)  On  the  death  of  a  member  a  co-operative 
society may transfer the share or interest of the deceased member to the person nominated in accordance 
with the rules made in this behalf, or, if there is no person so nominated, to such person as may appear to 
the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir 
or  legal  representative,  as  the  case  may  be,  a  sum  representing  the  value  of  such  member’s  share  or 
interest as ascertained in accordance with the rules or bye-laws: 

Provided that— 

(i)  in  the  case  of  a  co-operative  society  with  unlimited  liability,  such  nominee,  heir  or  legal 
representative, as the case may be, may require payment by the society of the value of the share or 
interest of the deceased member ascertained as aforesaid; 

11 

 
 
 
(ii) in the case of a co-operative society with limited liability, the society shall transfer the share 
or interest of the deceased member to such nominee, heir or legal representative, as the case may be, 
being qualified in accordance with the rules and bye-laws for membership of the society, or on his 
application  within  one  month  of  the  death  of  the  deceased  member  to  any  person  specified  in  the 
application who is so qualified; 

(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or 

legal representative, as the case may be. 

(2) A co-operative society shall, subject to the provisions of section 36 and unless within six months 
of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal 
representative, as the case may be, all other moneys due to the deceased member from the society. 

(3) All transfers and payments made by a co-operative society in accordance with the provisions of 

this section shall be valid and effectual against any demand made upon the society by any other person. 

 27. Liability of past member and estate of deceased member.—(1) Subject to the provisions  of 
sub-section  (2),  the  liability  of  a  past  member  or  of  the  estate  of  a  deceased  member  of  a  co-operative 
society for the debts of the society as they existed,— 

(a) in the case of a past member, on the date on which he ceased to be a member; 

(b) in the case of a deceased member, on the date of his death, shall continue for a period of two 

years from such date. 

(2) Where a co-operative society is ordered to be wound up under section 63, the liability of a past 
member  or  of  the  estate  of  a  deceased  member  who  ceased  to  be  a  member  or  died  within  two  years 
immediately  preceding  the  date  of  the  order  of  winding  up,  shall  continue  until  the  entire  liquidation 
proceedings are completed, but such liability shall extend only to the debts of the society as they existed 
on the date of his ceasing to be a member or death, as the case may be. 

CHAPTER IV 

MANAGEMENT OF CO-OPERATIVE SOCIETIES 

28. Final authority in a co-operative society.—(1) The final authority in a co-operative society shall 

vest in the general body of members: 

Provided that where the bye-laws of a co-operative society provide for the constitution of a smaller 
body  consisting  of  delegates  of  members  of  the  society  elected  or  selected  in  accordance  with  such      
bye-laws the smaller body shall exercise such powers of the general body as may be prescribed or as may 
be specified in the bye-laws of the society. 

(2) Notwithstanding anything contained in sub-section (2) of section 24 each delegate shall have one 

vote in the affairs of the society. 

 29. Annual general meeting.—(1) Every co-operative society shall, within a period of six months 
next after the date fixed for making-up its accounts for the year under the rules for the time being in force, 
call a general meeting of its members for the purpose of— 

(a) approval of the programme of the activities of the society prepared by the committee for the 

ensuing year; 

(b) election, if any, of the members of the committee other than nominated members subject to 

the provisions of section 31; 

(c) consideration of the audit report and the annual report; 

(d) disposal of the net profits; and 

(e) consideration of any other matter which may be brought forward in accordance with bye-laws: 

Provided  that  the  Registrar  may,  by  general  or  special  order,  extend  the  period  for  holding  such 

meeting for a further period not exceeding three months: 

12 

 
Provided  further  that,  if  in  the  opinion  of  the  Registrar  no  such  extension  is  necessary,  or  such 
meeting is not called by the society within the extended period, if any, granted by him, the Registrar or 
any person authorised by him may call such meeting in the manner prescribed, and that meeting shall be 
deemed  to  be  a  general  meeting  duly  called  by  the  society;  and  the  Registrar  may  order  that  the 
expenditure incurred in  calling  such a  meeting  shall be  paid  out  of the funds  of  the  society  or  by  such 
person  or  persons  who,  in  the  opinion  of  the  Registrar,  were  responsible  for  the  refusal  or  failure  to 
convene the general meeting. 

(2)  At  every  annual  general  meeting  of  a  co-operative  society,  the  committee  shall  lay  before  the 
society a statement showing the details of the loans, if any, given to any of the members of the committee 
during the preceding year. 

30. Special general meeting.—(1) The committee of a co-operative society may, at any time, call a 
special general meeting of the society and shall call such meeting within one month after the receipt of a 
requisition  in  writing  from  the  Registrar  or  from  such  number  of  members  or  a  proportion  of  the  total 
number of members, as may be provided in the bye-laws. 

(2)  If  a  special  general  meeting  of  a  co-operative  society  is  not  called  in  accordance  with  the 
requistion referred to in sub-section (1), the Registrar or any person authorised by him in this behalf shall 
have  the  power  to  call  such  meeting  and  that  meeting  shall  be  deemed  to  be  a  meeting  called  by  the 
committee, and the Registrar may order that the expenditure incurred in calling such a meeting shall be 
paid out of the funds of the society or by any such person or persons who, in the opinion of the Registrar, 
were responsible for the refusal or failure to convene the special general meeting. 

31. Election and nomination of members of committees.—(1) The superintendence, direction and 
control of the preparation of the electoral rolls for, and the conduct of, elections of the members of the 
committees of such co-operative societies or class of co-operative societies as may be prescribed shall be 
vested  in  such  returning  officers  not  below  the  rank  of  gazetted  officers  as  may  be  appointed  by  the 
Lieutenant-Governor in this behalf. 

(2) The vote at such elections shall be by secret ballot. 

(3) The  term  of  office  of the  elected  members  of  the  committee  shall  be  such, not  exceeding  three   

co-operative years including the co-operative year of their election, as may be specified in the bye-laws of 
the society: 

Provided  that  the  elected  members  shall  continue  to  hold  office  till  their  successors  are  elected  or 

nominated under the provisions of the Act or the rules or bye-laws. 

(4) No person shall be eligible to be elected as a member of the committee of a co-operative society 

unless he is shareholder of that co-operative society. 

(5) Notwithstanding anything contained in this Act, a person shall be disqualified for election as, or 
for  being,  the  president,  vice-president,  chairman,  vice-chairman,  managing  director,  secretary,  joint 
secretary or treasurer of a committee,— 

(a) if he has held any such office on that committee during two consecutive terms, whether full or 

part; 

(b) if he holds any such office on a committee of another co-operative society of the same type; 

(c)  if  he  holds  any  such  office  on  the  committees  of  three  or  more  co-operative  societies  of  a 

different type or different types: 

Provided that nothing contained in this sub-section shall be deemed to disqualify any such person for 

election as, or for being, a delegate of a society or a member of another committee. 

Explanation 1.—Where any person holding any office as aforesaid at the commencement of this Act 
is again elected to any such office after such commencement, he shall for the purpose of this sub-section 
be deemed to have held that office for one term before such election. 

Explanation 2.—A person who has ceased to hold any such office as aforesaid continuously for one 

full term shall again be qualified for election to any of those offices. 

13 

 
(6)  On  the  committee  of  such  co-operative  societies  or  class  of  co-operative  societies  as  may  be 
prescribed, two seats shall be reserved, one for the members who belong to the Scheduled Castes and one 
for economically weaker sections of the members who as land-owners or tenants or as both do not hold 
more  than  the  prescribed  area  of  agricultural  land  or  fulfil  the  prescribed  conditions,  and  if  no  such 
persons  are  elected,  the  committee  shall  co-opt  the  required  number  of  members  from  amongst  the 
persons entitled to such representation: 

Provided that in the case of a primary agricultural credit society such number of seats, being not less 
than one-half of the total number of members of the Committee, shall be reserved for members belonging 
to  the  Scheduled  Castes  and  the  aforesaid  economically  weaker  sections  of  the  members  as  may  be 
prescribed,  and  if  no  such  persons  are  elected,  the  Committee  shall  co-opt  the  required  number  of 
members from amongst the persons entitled to such representation.  

Explanation.—For the purpose of this sub-section,— 

(i) “Scheduled Castes” means any of the Scheduled Castes specified in Part I of the Schedule to 

the Constitution (Scheduled Castes) (Union Territories) Order, 1951; 

(ii) “primary agricultural credit society” has the meaning assigned to it in clause (cii) of section 2 

of the Reserve Bank of India Act, 1934 (2 of 1934). 

(7)  Notwithstanding  anything  contained  in  this  Act,  any  dispute  relating  to  election  of  members  of 
any  committee  of  a  co-operative  society  mentioned  in  sub-section  (1)  shall  be  referred  to  the      
Lieutenant-Governor whose decision thereon shall be final. 

(8) The Lieutenant-Governor may make rules generally to provide for or to regulate matters in respect 

of elections of members of the committees. 

(9) Notwithstanding anything contained in sub-sections (1) to (8),— 

(a) where the Central Government has subscribed to the share capital of a co-operative society, 
the Central Government or any person authorised by it in this behalf shall have the right to nominate 
on  the  committee  such  number  of  persons  not  exceeding  three  or  one-third  of  the  total  number  of 
members thereof, whichever is less, as the Central Government may determine; 

(b)  where  the  Industrial  Finance  Corporation,  the  State  Finance  Corporation  or  any  other 
financing  institution  notified  in  this  behalf  by  the  Central  Government  has  provided  finance  to  a      
co-operative society, the Industrial Finance Corporation, State Finance Corporation or other financing 
institution, as the case may be, shall have the right to nominate one person on the committee. 

(10)  A  person  nominated under  sub-section  (9)  shall  hold  office  during  the  pleasure  of  the  Central 

Government or the Corporation or other financing institution, as the case may be. 

32.  Supersession  of  committee.—(1)  If,  in  the  opinion  of  the  Registrar,  the  committee  of  any          

co-operative society persistently makes default or is negligent in the performance of the duties imposed 
on it by this Act or the rules or the by-laws, or commits any act which is prejudicial to the interest of the 
society,  or  its  members,  the  Registrar  may,  after  giving  the  committee  an  opportunity  to  state  its 
objections, if any, by order in writing, remove the committee; and 

(a) order fresh election of the committee, or 

(b) appoint one or more administrators who need not be members of the society, 

to  manage  the  affairs  of  the  society  for  a  period  not  exceeding  one  year  specified  in  the  order,  which 
period  may,  at  the  discretion  of  the  Registrar  be  extended  from  time  to  time,  so,  however,  that  the 
aggregate period does not exceed three years. 

(2)  The  Registrar  may  fix  any  remuneration  for  the  administrator,  as  he  may  think  fit.  Such 

remuneration shall be paid out of the funds of the society. 

(3) The administrator shall, subject to the control of the Registrar and to such instructions as he may 
from  time  to  time  give,  have  power  to  exercise  all  or  any  of  the  functions  of  the  committee  or  of  any 
officer of the society and take all such actions as may be required in the interest of the society. 

14 

 
(4) The administrator shall, at the expiry of his term of office, arrange for  the constitution of a new 

committee in accordance with the bye-laws of the society. 

(5) Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar 

shall consult the financing institution to which it is indebted. 

(6) Notwithstanding anything contained in this Act, the Registrar shall in the case of a co-operative 
bank, if so required in writing by the Reserve Bank in the public interest or for preventing the affairs of 
the  co-operative  bank  being  conducted in  a  manner  detrimental to  the  interests of  the  depositors  or for 
securing  the  proper  management  of  a  co-operative  bank  pass  an  order  for  the  supersession  of  the 
committee  of  that  co-operative  bank  and  appointment  of  an  administrator  therefor  for  such  period  or 
periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve 
Bank. 

33. Securing possession of records, etc.—(1) (a) If the record, registers or the books of accounts of 
a co-operative society are likely to be tampered with or destroyed and the fund and property of a society 
are likely to be misappropriated or misapplied; or 

(b) if the committee of a co-operative society is reconstituted at a general meeting of the society or 
the committee of a society is removed by the Registrar under section 32 or if the society is ordered to be 
wound up under section 63 and the outgoing members of the committee refuse to hand over charge of the 
records and property of the society to those having or entitled to receive such charge, 

the Registrar may apply to the magistrate, within whose jurisdiction the society functions, for securing the 
records and property of the society. 

(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any 
police officer, not below the rank of sub-inspector to enter and search any place where the records and the 
property are kept or are believed to be kept and to seize such records and property; and the records and 
property  so  seized  shall  be  handed  over  to  the  new  committee  or  administrator  of  the  society  or  the 
liquidator, as the case may be. 

34.  Acts  of  co-operative  societies  not  to  be  invalidated  by  certain  defects.—No  act  of  a              

co-operative society or of any committee or of any officer shall be deemed to be invalidated by reason 
only of the existence of any defect in procedure or in the constitution of the society or of the committee or 
in  the  appointment  or  election  of  an  officer  or  on  the  ground  that  such  officer  was  disqualified  for  his 
appointment. 

CHAPTER V 

PRIVILEGES OF CO-OPERATIVE SOCIETIES 

35. Co-operative societies to be bodies corporate.—The registration of a co-operative society shall 
render  it  a  body  corporate  by  the  name  under  which  it  is  registered  having  perpetual  succession  and  a 
common seal, and with power to hold property, enter into contract, institute and defend suits and other 
legal proceedings and to do all things necessary for the purposes for which it is constituted. 

36.  First  charge  of  co-operative  society  on  certain  assets.—(1)  Notwithstanding  anything 
contained  in  any  law  for  the  time  being  in  force,  but  subject  to  any  prior  claim  of  the  Government  in 
respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing 
to a co-operative society by any member or past member or deceased member shall be a first charge upon 
the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements or 
machinery,  raw  materials  for  manufacture  and  any  finished  products  manufactured  from  such  raw 
materials, belonging to such member, past member or forming part of the estate of the deceased member, 
as the case may be. 

(2) No person shall transfer any property which is subject to a charge under sub-section (1) except 

with the previous permission in writing of the co-operative society which holds the charge. 

(3)  Notwithstanding  anything  contained  in  any  law  for  the  time  being  in  force,  any  transfer  of 

property made in contravention of the provisions of sub-section (2) shall be void. 

15 

 
(4)  The  charge  created  under  sub-section  (1)  shall  be  available  as  against  any  claim  of  the 
Government arising from a loan granted under the Land Improvement Loans Act, 1883 (19 of 1883), or 
the Agriculturists’ Loans Act, 1884 (12 of 1884), after the grant of the loan by the society. 

37.  Charge  on 

immovable  property  of  members  borrowing 
societies.—Notwithstanding  anything  contained  in  this  Act  or  in  any  other  law  for  the  time  being  in   
force,— 

loans 

from  certain             

(i) any person who makes an application to a society of which he is a member for a loan shall, if 
he owns any land or has interest in any land as a tenant,  make a declaration in the prescribed form 
which shall state that the applicant thereby creates a charge on such land or interest specified in the 
declaration for the payment of the amount of the loan which the society may make to the member in 
pursuance of the application  and  for  all  future  advances,  if  any,  required  by  him  which the society 
may  make  to  him  as  such  member  subject  to  such  maximum  as  may  be  determined  by  the  society 
together with interest on such amount of the loan and advances; 

(ii) any person who has borrowed a loan from a society of which he is a member before the date 
of the coming into force of this Act, and who owns any land or has any interest in land as a tenant 
shall, as soon as possible, make a declaration in the form and to the effect referred to in clause (i); 

(iii) a declaration made under clause (i) or clause (ii) may be varied at any time by a member with 

the consent of the society in favour of which such charge is created; 

(iv) no member shall alienate the whole or any part of the land or interest therein specified in the 
declaration  made  under  clause  (i)  or  clause  (ii)  until  the  whole  amount  borrowed  by  the  member 
together with interest thereon is paid in full: 

Provided that for the purpose of paying in full to the society the whole amount borrowed by the 
member together with interest thereon, the member may, with the previous permission in writing of 
the society and subject to such conditions as the society may impose, alienate the whole or any part of 
such land or interest thereon: 

Provided further that standing crops on any land may be alienated with the previous permission of 

the society; 

(v) any alienation made in contravention of the provisions of clause (iv) shall be void; 

(vi)  subject  to  the  prior  claims  of  the  Government  in  respect  of  land  revenue  or  any  money 
recoverable  as  land  revenue,  there  shall  be  a  first  charge  in  favour  of  the  society  on  the  land  or 
interest specified in the declaration made under clause (i) or clause (ii) for and to the extent of the 
dues owing by him on account of the loans and advances; 

(vii)  the  record  of  rights  shall  also  include  the  particulars  of  every  charge  on  land  or  interest 
created under a declaration under clause (i) or clause (ii) notwithstanding anything contained in any 
law relating to land revenue for the time being in force; 

(viii)  any  sum  due  to  a  society  in  consequence  of  charge  created  under  a  declaration  under        

clause (i) or clause (ii) shall, on application for its recovery being made by such society accompanied 
by  a  certificate  signed  by  the  Registrar,  be  recoverable  by  the  Collector,  according  to  the  law  and 
under the rules for the time being in force for the recovery of land revenue. 

Explanation.—For the purposes of this section, “society” shall mean any co-operative society or class 
of co-operative societies specified in this behalf by the Lieutenant-Governor by a general or special order. 

38.  Charge  and  set-off  in  respect  of  share  or  contribution  or  interest  of  members.—A              

co-operative society shall have a charge upon the share or contribution or interest in the capital and on the 
deposits  of  a  member  or  past  member,  or  deceased  member  and  upon  any  dividend,  bonus  or  profits 
payable to a member or past member or the estate of a deceased member in respect of any debt due from 
such member or past member or the estate of such deceased member to the society, and may set-off any 
sum  credited  or  payable  to  a  member  or  past  member  or  the  estate  of  deceased  member  in  or  towards 
payment of any such debt. 

16 

 
39.  Share  or  contribution  or  interest  not  liable  to  attachment.—Subject  to  the  provisions  of 
section 38, the share or contribution or interest of a member or past member or deceased member in the 
capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any 
court  in  respect  of  any  debt  or  liability  incurred  by  such  member,  and  a  receiver  under  the  Provincial 
Insolvency Act, 1920 (5 of 1920) shall not be entitled to or have any claim on such share or contribution 
or interest. 

40.  Register  of  members.—Any  register  or  list  of  members  or  shares  kept  by  any  co-operative 

society shall be prima facie evidence of any of the following particulars entered therein:— 

(a) the date on which any person entered in such register or list became a member; 

(b) the date on which any such person ceased to be a member. 

41. Admissibility of copy of entry as evidence.—(1) A copy of any entry in a book of a co-operative 
society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, 
be received in any suit or legal proceedings as  prima facie evidence of the existence of such entry, and 
shall  be  admitted  as  evidence  of  the  matters,  transactions  and  accounts  therein  recorded  in  every  case 
where, and to the same extent as, the original entry itself is admissible. 

(2)  No officer of a  co-operative  society  and  no officer in  whose  office the books  of  a  co-operative 
society are deposited after liquidation shall, in any legal proceedings to which the soceity or the liquidator 
is not a party, be compelled to produce any of the society’s books or documents the contents of which can 
be  proved  under  this  section,  or  to  appear  as  a  witness  to  prove  the  matters,  transactions  and  accounts 
therein recorded, except under order of the court or the arbitrator made for special cause. 

42. Exemption from compulsory registration of instruments.—Nothing in clauses (b) and (c) of 

sub-section (1) of section 17 of the Indian Registration Act, 1908 (16 of 1908) shall apply to— 

(1) any instrument relating to shares in a co-operative society notwithstanding that the assets of 

the society consist in whole or in part of immovable property; or 

(2) any debenture issued by any such society and not creating, declaring, assigning, limiting or 
extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the 
holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, 
conveyed, or otherwise transferred the whole or part of its immovable property or any interest therein 
to trustees upon trust for the benefit of the holders of such debentures; or 

(3) an endorsement upon or transfer of any debenture issued by any such society. 

43.  Exemption  from  certain  taxes,  fees  and  duties.—(1)  The  Central  Government  may,  by 
notification in the Official Gazette, remit the income-tax payable in respect of the profits of any class of 
co-operative  societies  or  the  dividends  or  other  payments  received  by  members  of  any  class  of  such 
societies on account of profits. 

(2) The Central Government may, by notification in the Official Gazette, remit in respect of any class 

of co-operative societies— 

(a)  the  stamp  duty  chargeable  under  any  law  for  the  time  being  in  force  in  respect  of  any 
instrument executed by or on behalf of a co-operative society or by an officer or member thereof and 
relating to the business of such society or any class of such instruments or in respect of any award or 
order made under this Act, in cases, where, but for such remission the co-operative society, officer or 
member, as the case may be, would be liable to pay such stamp duty; 

(b)  any  fee  payable  under  any  law  for  the  time  being  in  force  relating  to  the  registration  of 

documents or court-fee. 

(3) The Central Government may, by notification, exempt any class of co-operative societies from— 

(a) land revenue; 

(b) taxes on agricultural income; 

(c) taxes on sale or purchase of goods; and 

17 

 
(d) taxes on professions, trades, callings and employments. 

44.  Deduction  from  salary  to  meet  co-operative  society’s  claim  in  certain  cases.—(1) 
Notwithstanding anything contained in any law for the time being in force, a member of a co-operative 
society may execute an agreement in favour of the society providing that his employer shall be competent 
to deduct from the salary or wages payable to him by the employer, such amount as may be specified in 
the  agreement  and  to  pay  the  amount  so  deducted  to  the  society  in  satisfaction  of  any  debt  or  other 
demand owing by the member to the society. 

(2) On the execution of such agreement, the employer shall, if so required by the co-operative society 
by  a  requisition  in  writing  and  so  long  as  the  society  does  not  intimate  that  the  whole  of  such  debt  or 
demand  has  been  paid,  make  the  deduction  in  accordance  with  the  agreement  and  pay  the  amount  so 
deducted to the society, as if it were a part of the salary or wages payable on the day as required under the 
Payment of Wages Act, 1936 (4 of 1936). Such payment shall be valid discharge of the employer for his 
liability to pay the amount deducted. 

(3)  Where  a  requisition  in  writing  from  any  society  registered  or  deemed  to  be  registered  in  any 
reciprocating  State  in  respect  of  a  member  of  that society,  who  has  executed  any  such  agreement  as  is 
referred to in sub-section (1) and who for the time being is employed in the Union territory of Delhi, is 
received by his employer, the requisition shall be acted upon as if it had been made by a society in Delhi 
and the provisions of this section shall have effect accordingly. 

Explanation.—For  the  purpose  of  this  sub-section,  “reciprocating  State”  means  any  State  or  Union 
territory  which  the  Lieutenant-Governor  may,  by  notification  in  the  Delhi  Gazette,  declare  to  be  a 
reciprocating State. 

(4) If after the receipt of a requisition made under sub-section (2) or sub-section (3), the employer at 
any time fails to deduct the amount specified in the requisition from the salary or wages payable to the 
member concerned or makes default in remitting the amount deducted to the society, the society shall be 
entitled to recover any such amount from the employer as arrears of land revenue and the amount so due 
from  the  employer  shall  rank  in  priority  in  respect  of  the  liability  of  the  employer  equal  to  that  of  the 
wages in arrears. 

(5)  Nothing  contained  in  this  section  shall  apply  to  establishment  under  a  railway  administration 

operating any railway as defined in clause (20) of article 366 of the Constitution. 

45. Other forms of State aid to co-operative societies.—Notwithstanding anything contained in any 

law for the time being in force, the Central Government may— 

(a) subscribe to the share capital of a co-operative society; 

(b) give loans or make advances to co-operative societies; 

(c)  guarantee  the  repayment  of  principal  and  payment  of  interest  on  debentures  issued  by  a        

co-operative society; 

(d)  guarantee the  repayment  of  share  capital  of a  co-operative society  and  dividends thereon  at 

such rates as may be specified by the Central Government; 

(e)  guarantee  the  repayment  of  principal  and  payment  of  interest  on  loans  and  advances  to  a       

co-operative society; and 

(f) give financial assistance in any other form, including subsidies, to any co-operative society. 

CHAPTER VI 

PROPERTIES AND FUNDS OF CO-OPERATIVE SOCIETIES 

46. Funds not to be divided by way of profit.—No part of the funds of a co-operative society shall 

be divided by way of bonus or dividend or otherwise among its members: 

18 

 
 
 
Provided that  after  at  least  one-fourth  of  the  net  profits in  any  year  has  been  carried to  the  reserve 
fund,  payments  from  the  remainder  of  such  profits  and  from  any  profits  of  past  years  available  for 
distribution may be made to the members to such extent and under such conditions as may be prescribed 
by the rules or bye-laws. 

47.  Contribution  to  charitable  purpose.—Any  co-operative society  may,  with  the  sanction  of  the 
Registrar, after one-fourth of the net profits in any year has been carried to the reserve fund, contribute an 
amount  not  exceeding  five  per  cent.  of  the  remaining  net  profits  to  any  purpose  connected  with  the 
development of co-operative movement or charitable purpose as defined in section 20 of the Charitable 
Endowments Act, 1890 (6 of 1890). 

48.  Contribution  to  Co-operative  Education  Fund.—A  co-operative  society  shall  out  of  its  net 
profits in any year credit such portion of the profits not exceeding five per cent. as may be prescribed to 
the Co-operative Education Fund constituted under the rules. 

49. Investment of funds.—(1) A co-operative society may invest or deposit its fund— 

(a) in the post office savings bank; or 

(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (2 of 1882); or 

(c) in the shares or securities of any other co-operative society; or 

(d)  with  any  bank  carrying  on  the  business  of  banking  approved  for  this  purpose  by  the     

Registrar; or 

(e) in any other mode permitted by the rules. 

(2) Any investments or deposits made before the commencement of this Act which would have been 

valid if this Act had been in force are hereby ratified and confirmed. 

50. Restrictions on loans.—(1) A co-operative society shall not make a loan to any person other than 

a member: 

Provided that with the general or special sanction of the Registrar a co-operative society may make a 

loan to another co-operative society. 

(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to 

a depositor within his deposit on its security. 

51.  Restrictions  on  borrowings.—A  co-operative  society  shall  receive  deposits  and  loans  only  to 

such extent and under such conditions as may be prescribed or as may be specified in the bye-laws. 

52.  Restrictions  on  other  transactions  with  non-members.—Save  as  provided  in  sections  50       

and 51, the transactions of a co-operative society with any person other than a member shall be subject to 
such prohibitions and restrictions, if any, as may be prescribed. 

CHAPTER VII 

AUDIT, INQUIRY, INSPECTION AND SURCHARGE 

53.  Audit.—(1) The  Registrar  shall  audit  or  cause to  be  audited  by  a  person  authorised  by  him  by 
general or special order in writing in this behalf, the accounts of every co-operative society at least once 
in each year. 

(2)  The  audit  under  sub-section  (1)  shall  include  an  examination  of  overdue  debts,  if  any,  the 

verification of the cash balance and securities, and a valuation of the assets and liabilities of the society. 

(3)  The  person  auditing  the  accounts  of  a  co-operative  society  shall  have  free  access  to  the  books, 
accounts,  papers,  vouchers,  stock  and  other  property  of  such  society  and  shall  be  allowed  to  verify  its 
cash balance and securities. 

(4) The directors, managers, administrators and other officers of the society shall furnish to the person 
auditing the accounts of a co-operative society all such information as to its transactions and working as 
such person may require. 

19 

 
(5)  The  Registrar  or  the  person  authorised  by  him  under  sub-section  (1)  to  audit  the  accounts  of  a    

co-operative society shall have power where necessary— 

(a) to summon at the time of his audit any officer, agent, servant or member of the society, past or 
present, who he has reason to believe can give valuable information in regard to  transactions of the 
society or the management of its affairs; and 

(b) to require the production of any book or document relating to the affairs of, or any cash or 
securities belonging to, the society by any officer, agent, servant, or member in possession  of such 
books, documents, cash or securities and in the event of serious irregularities discovered during audit, 
to take them into custody. 

(6)  If  at  the  time  of  audit  the  accounts  of  a  society  are  not  complete,  the  Registrar  or  the  person 
authorised by him under sub-section (1) to audit, may cause the accounts to be written up at the expense 
of the society. 

(7) Audit fee, if any, due from any co-operative society shall be recoverable in the same manner as is 

provided in section 75. 

54. Inspection of societies.—The Registrar, or any person authorised by general or special order in 
this behalf by him, may inspect a co-operative society. For the purpose of inspection, the Registrar or the 
person  so  authorised  by  him  shall  at  all  times  have  access  to  all  books,  accounts,  papers,  vouchers, 
securities, stock and other property of the society and may in the event of serious irregularities discovered 
during inspection take them into custody and shall have power to verify the cash balance of the society 
and  subject  to  the  general  or  special  order  of  the  Registrar  to  call  a  committee  meeting  and  a  general 
meeting. Every officer or member of the society shall furnish such information with regard to the working 
of the society as the Registrar or the person making such inspection may require. 

55.  Inquiry  by  Registrar.—(1)  The  Registrar  may  of  his  own  motion  or  on  the  application  of  a 
majority of the  committee or of not less than one-third of the members, hold an inquiry or direct some 
person  authorised  by  him  by  order  in  writing  in  this  behalf  to  hold  an  inquiry  into  the  constitution, 
working and financial condition of a co-operative society. 

(2)  The  Registrar  or  the  person  authorised  by  him  under  sub-section  (1)  shall  have  the  following 

powers, namely:— 

(a) he shall at all times have, for purpose of examination, free access to the books, accounts, cash 
and  other  properties  belonging  to  or  in  the  custody  of  the  society  and  may  summon  any  person  in 
possession or responsible for the custody of any such books, accounts, documents, securities, cash or 
other properties to produce the same, at any place specified by him; 

(b)  he  may,  notwithstanding  any  rule  or  bye-law  specifying  the  period  of  notice  for  a  general 
meeting of the society, require the officers of the society to call a general meeting at such time and 
place  at  the  headquarters  of  the  society  to  consider  such  matters,  as  may  be  directed  by  him;  and 
where the officers of the society refuse or fail to call such a meeting he shall have power to call it 
himself; 

(c) he may summon any person who is reasonably believed by him to have any knowledge of the 
affairs  of  the  society  to  appear  before  him  at  any  place  at  the  headquarters  of  the  society  or  any 
branch thereof and may examine such person on oath. 

(3)  Any  meeting  called  under  clause  (b)  of  sub-section  (2)  shall  have  all  the  powers  of  a  general 
meeting called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws. 

(4) The Registrar shall communicate a brief summary of the report of the inquiry to the society, the 
financing institutions, if any, to which the society is affiliated, and to the person or authority, if any, at 
whose instance the inquiry is made. 

56.  Inspection  of  books  of  indebted  societies.—(1)  The  Registrar  shall,  on  the  application  of  a 
creditor of a co-operative society, inspect or direct some person authorised by him by order in writing in 
this behalf to inspect the books of the society: 

20 

 
Provided that no such inspection shall be made unless the applicant— 

(a)  satisfies  the  Registrar  that  the  debt  is  a  sum  then  due,  and  that  he  has  demanded  payment 

thereof and has not received satisfaction within a reasonable time; and 

(b) deposits with the Registrar such sum as security for the costs of proposed inspection as the 

Registrar may require. 

(2) The Registrar shall communicate the result of any such inspection to the creditor. 

57.  Costs  of inquiry.—Where  an inquiry  is  held  under  section  55,  or  an  inspection  is  made  under 
section 56, the Registrar may apportion the costs, or such part of the costs, as he may think fit, between 
the  society,  the  members  or  creditor  demanding  an  inquiry  or  inspection,  and  the  officers  or  former 
officers and the members or past members of the society: 

Provided that— 

(a) no order of the apportionment of the costs shall be made under this section unless the society 

or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard; 

(b)  the  Registrar  shall  state  in  writing  under  his  own  hand  the  grounds  on  which  the  costs  are 

apportioned. 

58. Recovery of costs.—Any sum awarded by way of costs under section 57 may be recovered, on 
application  to  a  magistrate  having  jurisdiction  in  the  place  where  the  person  from  whom  the  money  is 
claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the 
same as if it were a fine imposed by himself. 

59.  Surcharge.—(1)  If  in  the  course  of  an  audit,  inquiry,  inspection  or  the  winding  up  of  a                 

co-operative  society,  it  is  found  that  any  person,  who  is  or  was  entrusted  with  the  organisation  or 
management of such society or who is or has at any time been an officer or an employee of the society, 
has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the 
assets  of  the  society  by  breach  of  trust  or  wilful  negligence  or  has  misappropriated  or  fraudulently 
retained any money or other property belonging to such society, the Registrar may, of his own motion or 
on  the  application  of  the  committee,  liquidator  or  any  creditor,  inquire  himself  or  direct  any  person 
authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person: 

Provided that no such inquiry shall be held after the expiry of  six years from the date of any act or 

omission referred to in this sub-section. 

(2)  Where  an  inquiry  is  made  under  sub-section  (1),  the  Registrar  may,  after  giving  the  person 
concerned an opportunity of being heard, make an order, requiring him to repay or restore the money or 
property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to 
such extent, as the Registrar may consider just and equitable. 

CHAPTER VIII 

SETTLEMENT OF DISPUTES 

60.  Disputes  which  may  be  referred  to  arbitration.—(1)  Notwithstanding  anything  contained  in 
any law for the time being in force, if any dispute touching the constitution, management or the business 
of  a  co-operative  society  other  than  a  dispute  regarding  disciplinary  action  taken  by  the  society  or  its 
committee against a paid employee of the society arises— 

(a)  among  members,  past  members  and  persons  claiming  through  members,  past  members  and 

deceased members, or 

(b)  between  a  member,  past  member  or  person  claiming  through  a  member,  past  member  or 
deceased member and the society, its committee or any officer, agent or employee of the society or 
liquidator, past or present, or 

(c) between the society or its committee and any past committee, any officer, agent or employee, 
or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any 
deceased officer, deceased agent, or deceased employee of the society, or 

21 

 
(d) between the society and any other co-operative society, between a society and liquidator of 

another society or between the liquidator of one society and the liquidator of another society, 

such  disputes  shall  be  referred  to  the  Registrar  for  decision  and  no  court  shall  have  jurisdiction  to 
entertain any suit or other proceedings in respect of such dispute. 

(2)  For  the  purposes  of  sub-section  (1),  the  following  shall  be  deemed  to  be  disputes  touching  the 

constitution, management or the business of a co-operative society, namely:— 

(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs 

or legal representatives of a deceased member, whether such debt or demand be admitted or not; 

(b)  a  claim  by  a  surety  against  the  principal  debtor  where  the  society  has  recovered  from  the 
surety any amount in respect of any debt or demand due to it from the principal debtor as a result of 
the default of the principal debtor, whether such debt or demand is admitted or not; 

(c)  any  dispute  arising  in  connection  with  the  election  of  any  officer  of  a  society  other  than  a 

society mentioned in sub-section (1) of section 31. 

(3) If any question arises whether a dispute referred to the Registrar under this section is or is not a 
dispute  touching  the  constitution,  management  or  the  business  of  a  co-operative  society,  the  decision 
thereon of the Registrar shall be final and shall not be called in question in any court. 

(4) (a) Notwithstanding anything contained in the Limitation Act, 1963 (36 of 1963), but subject to 
the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the 
Registrar under sub-section (1) shall— 

(i)  when  the  dispute  relates  to  the  recovery  of  any  sum  including  interest  thereon  due  to  a           

co-operative society by a member thereof, be computed from the date on which such member dies or 
ceases to be a member of the society; 

(ii) save as otherwise provided in sub-clause (iii), when the dispute relates to any act or omission 
on the part of any of the parties referred to in clause (b) or clause (c) of sub-section (1), be six years 
from the date on which the act or omission with reference to which the dispute arose, took place; 

(iii) when the dispute relates to a co-operative society which has been ordered to be wound up 
under section 63 or in respect of which an administrator has been appointed under section 32, be six 
years from the date of the order issued under section 63 or section 32, as the case may be; 

(iv) when the dispute is in respect of an election of an officer of a co-operative society other than 
a society referred to in sub-section (1) of section 31, be one month from the date of the declaration of 
the result of the election. 

(b) The period of limitation in the case of any other dispute except those mentioned in the foregoing 
clause which are required to be referred to the Registrar under the last preceding section shall be regulated 
by the provisions of the Limitation Act, 1963 (36 of 1963), as if the dispute was a suit and the Registrar a 
civil court. 

(c) Notwithstanding anything contained in clauses (a) and (b), the Registrar may admit a dispute after 
the expiry of the period of limitation, if the applicant satisfies the Registrar that he had sufficient cause for 
not referring the dispute within such period and the dispute so admitted shall be a dispute which shall not 
be barred on the ground that the period of limitation has expired. 

61.  Reference  of  disputes  to  arbitration.—(1)  The  Registrar  may,  on  receipt  of  the  reference  of 

dispute under section 60,— 

(a) decide the dispute himself, or 

(b) transfer if for disposal to any person who has been invested by the Lieutenant-Governor with 

powers in that behalf, or 

(c) refer it for disposal to one arbitrator. 

22 

 
(2)  The  Registrar  may  withdraw  any  reference  transferred  under  clause  (b)  of  sub-section  (1)  or 
referred under clause (c) of that sub-section and decide it himself or refer the same to another arbitrator 
for decision. 

(3) The Registrar or any other person to whom a dispute is referred for decision under this section 
may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the 
interest of justice. 

62. Power of financing bank to proceed.—(1) If a co-operative society is unable to pay its debts to a 
financing bank by reason of its members committing default in the payment of the moneys due by them, 
the financing bank  may direct the committee of such a society to proceed against such members under 
section 60 and if the committee fails to do so within a period of ninety days from the date of receipt of 
such direction, the financing bank itself may proceed against such members in which case the provisions 
of this Act, the rules or the bye-laws shall apply as if all references to the society or its committee in the 
said provisions were references to the financing bank. 

(2) Where a financing bank has obtained a decree or award against a society in respect of moneys due 
to it from the society, the financing bank may proceed to recover such moneys firstly from the assets of 
the society and secondly from the members to the extent of their debts due to the society. 

CHAPTER IX 

WINDING UP OF CO-OPERATIVE SOCIETIES 

63. Winding up of co-operative societies.—(1) If the Registrar, after an inquiry has been held under 
section 55, or an inspection has been made under section 56, or on receipt of an application made by not 
less than three-fourths of the members of a co-operative society, is of opinion that the society ought to be 
wound up, he may issue an order directing it to be wound up. 

(2) The Registrar may of his own motion make an order directing the winding up of a co-operative 

society— 

(a) where it is a condition of the registration of the society that the society shall consist of at least 

ten members and the number of members has been reduced to less than ten, or 

(b)  where  the  co-operative  society  has  not  commenced  working  or  has  ceased  to  function  in 

accordance with co-operative principles. 

(3) The Registrar may cancel an order for the winding up of a co-operative society, at any time, in 

any case where, in his opinion, the society should continue to exist. 

(4) A copy of such order shall be communicated by registered post to the society and to the financing 

institutions, if any, of which the society is a member. 

(5) Notwithstanding anything contained in this section no co-operative bank shall be wound up except 

with the previous sanction in writing of the Reserve Bank. 

64.  Winding  up  of  co-operative  banks  at  the  direction  of  the  Reserve  Bank.—Notwithstanding 
anything  to  the  contrary  contained  in  this  Act,  the  Registrar  shall  make  an  order  for  winding  up  of  a       
co-operative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of 
the Deposit Insurance Corporation Act, 1961 (47 of 1961). 

65.  Reimbursement  to  the  Deposit  Insurance  Corporation  by  the  liquidator.—Where  a              

co-operative  bank  being  an  insured  bank  within  the  meaning  of  the  Deposit  Insurance  Corporation       
Act, 1961 (47 of 1961), is wound up, or taken into liquidation, and the Deposit Insurance Corporation has 
become  liable to the depositors of the insured bank under sub-section (1) of section 16 of that Act, the 
Deposit  Insurance  Corporation  shall  be  reimbursed  by  the  liquidator  or  such  other  person  in  the 
circumstances  to  the  extent  and  in  the  manner  provided  in  section  21  of  the  Deposit  Insurance 
Corporation Act, 1961. 

23 

 
 
 
66. Liquidator.—(1) Where the Registrar has made an order under section 63 for the winding up of a 

co-operative society, the Registrar may appoint a liquidator for the purpose and fix his remuneration. 

(2)  A  liquidator  shall,  on  appointment,  take  into  his  custody  or  under  his  control  all  the  property, 
effects and actionable claims to which the society is or appears to be entitled and shall take such steps as 
he  may  deem  necessary  or  expedient,  to  prevent  loss  or  deterioration  of,  or  damage  to,  such  property, 
effects  and  claims.  He  may  carry  on  the  business  of  the  society  so  far  as  may  be  necessary  with  the 
previous approval of the Registrar. 

(3) Where an appeal is preferred under section 76, an order of winding up of a co-operative society 

made under section 63 shall not operate thereafter until the order is confirmed in appeal: 

Provided  that  the  liquidator  shall  continue  to  have  custody  or  control  of  the  property,  effects  and 
actionable  claims  mentioned  in  sub-section  (2)  and  have  authority  to  take  the  steps  referred  to  in  that    
sub-section. 

(4) Where an order of winding up of a co-operative society is set aside in appeal, the property, effects 

and actionable claims of the society shall revest in the society. 

67. Powers of liquidator.—(1) Subject to any rules made in this behalf, the whole of the assets of a 
co-operative  society,  in  respect  of  which  an  order  for  winding  up  has  been  made,  shall  vest  in  the 
liquidator  appointed  under  section  66  from  the  date  on  which  the  order  takes  effect  and  the  liquidator 
shall have power to realise such assets by sale or otherwise. 

(2) Such liquidator shall also have power, subject to the control of the Registrar,— 

(a) to institute and defend suits and other legal proceedings on behalf of the co-operative society 

by the name of his office; 

(b) to determine from time to time the contribution (including debts due and costs of liquidation) 
to be made or remaining to be made by the members or past members or by the estates or nominees, 
heirs or legal representatives of deceased members or by any officers or former officers, to the assets 
of the society; 

(c) to investigate all claims against the co-operative society and subject to the provisions of this 

Act, to decide questions of priority arising between claimants; 

(d) to pay claims against the co-operative society including interest up to the date of winding up 
according  to  their  respective  priorities,  if  any,  in  full  or  rateably,  as  the  assets  of  the  society  may 
permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest 
from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in 
any case; 

(e)  to  determine  by  what persons  and in  what proportions  the  costs  of  the liquidation  are  to  be 

borne; 

(f) to determine whether any person is a member, past member or nominee of deceased member; 

(g) to give such directions in regard to the collection and distribution of the assets of the society 

as may appear to him to be necessary for winding up the affairs of the society; 

(h) to carry on the business of the society so far as may be necessary for the beneficial winding up 

of the same; 

(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or 

having or alleging to have any claim, present or future, whereby the society may be rendered liable; 

(j) to make any compromise or arrangement with any person between whom and the society there 

exists any dispute and to refer any such dispute to arbitration; 

(k) after consulting the members of the society, to dispose of the surplus, if any, remaining after 

paying the claims against the society, in such manner as may be prescribed; and 

24 

 
(l)  to  compromise  all calls  or liabilities to  calls and debts  and  liabilities  capable  of resulting in 
debts,  and  all  claims,  present  or  future,  certain  or  contingent,  subsisting  or  supposed  to  subsist 
between the society and a contributory or alleged contributory or other debtor or person apprehending 
liability to the co-operative society and all questions in any way relating to or affecting the assets or 
the winding up of the society on such terms as may be agreed and take any security for the discharge 
of any such call, liability, debt or claim and give a complete discharge in respect thereof. 

(3) When the affairs of a co-operative society have been wound up, the liquidator shall make a report 

to the Registrar and deposit the records of the society in such place as the Registrar may direct. 

68. Priority of contributions  assessed  by  liquidator.—Notwithstanding  anything  contained in the 
Provincial Insolvency Act, 1920 (5 of 1920), the contribution assessed by a liquidator shall rank next to 
debts due to the Government or to any local authority in order of priority in insolvency proceedings. 

69.  Power  of  Registrar  to  cancel  registration  of  a co-operative society.—(1)  The  Registrar  may 
after considering the report of the liquidator made to him under sub-section (3) of section 67 order the 
registration of the co-operative society to be cancelled. 

(2) An order passed under sub-section (1) shall be communicated by registered post to the president 

of the society and to the financing institutions, if any, of which the society was a member. 

CHAPTER X 

EXECUTION OF AWARDS, DECREES, ORDERS AND DECISIONS 

70. Enforcement of charge.—Notwithstanding anything contained in Chapter VIII or any other law 
for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the 
Registrar  or  any  person  subordinate  to  him  empowered  by  the  Registrar  in  this  behalf  may,  on  the 
application  of  a  co-operative  society,  make  an  order  directing  the  payment  of  any  debt  or  outstanding 
demand due to the society by any  member or past or deceased member, by sale of the property or any 
interest therein, which is subject to a charge under section 36: 

Provided  that  no  order  shall  be  made  under  this  section  unless  the  member,  past  member  or  the 
nominee,  heir  or  legal  representative  of  the  deceased  member,  has  been  served  with  a  notice  in  the 
manner prescribed. 

71.  Execution  of  orders,  etc.—Every  decision,  award  or  order  duly  passed  by  the  Registrar  or 
arbitrator  or  Tribunal  under  section  29,  section  30,  section  59,  section  61,  section  70,  section  76,      
section 78 or section 79 shall, if not carried out,— 

(a) where the decision, award or order provides for the recovery of money, be executed according 

to the law for the time being in force relating to the recovery of land revenue: 

Provided that an application for the recovery of any sum in the manner aforesaid shall be made to 
the  Collector  and  shall  be  accompanied  by  a  certificate  signed  by  the  Registrar  or  by  any  person 
subordinate to him and empowered by the Registrar in this behalf; and 

(b)  in  any  other  case  be  executed  by  the  Registrar  or  any  person  subordinate  to  him  and 
empowered by the Registrar in this behalf, in the same manner as is provided in the case of a civil 
court by the Code of Civil Procedure, 1908 (5 of 1908). 

72.  Execution  of  orders  of  liquidator.—The  orders  of  the  liquidator  under  section  67  shall  be 
executed according to the Act and under the rules for the time being in force for the recovery of arrears of 
land revenue. 

73. Attachment before award.—Where the Registrar is satisfied that a party to any reference made 
to him under section 60 with intent to defeat or delay the execution of any decision that may be passed 
thereon is about to— 

(a) dispose of the whole or any part of the property; or 

(b) remove the whole or any part of the property from the local limits of the jurisdiction of the 

Registrar, 

25 

 
the  Registrar  may,  unless  adequate  security  is  furnished,  direct  the  conditional  attachment  of  the  said 
property or such part thereof as he thinks necessary. Such attachment shall be executed by a civil court 
having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect 
as such an order: 

Provided  that  the  powers  of  the  Registrar  under  this  section  shall  not  be  delegated  to  any  officer 

below such rank as may be prescribed. 

74. Registrar or person empowered by him to be civil court for certain purposes.—The Registrar 
or any person empowered by him in this behalf shall be deemed, when exercising any powers under this 
Act  for  the  recovery  of  any  amount  by  the  attachment  and  sale  or  by  sale  without  attachment  of  any 
property, or when passing any orders on any application made to him for such recovery or for taking a 
step-in-aid  of  such  recovery,  to  be  civil  court  for  the  purposes  of  article  136  of  the  Schedule  to  the 
Limitation Act, 1963 (36 of 1963). 

75. Recovery of sums due to Government.—(1) All sums due from a co-operative society, or from 
an  officer  or  member  or  past  member  of  a  co-operative  society  as  such,  to  Government,  including  any 
costs awarded to Government under any provision of this Act, may on a certificate issued by the Registrar 
in this behalf, be recovered in the same manner as arrears of land revenue. 

(2) Sums due from a co-operative society to Government and recoverable under sub-section (1), may 
be recovered, firstly, from the property of the society, secondly, in the case of a society the liability of the 
members  of  which  is  limited,  from  the  members,  past  members  or  the  estates  of  deceased  members, 
subject to the limit of their liability, and, thirdly, in the case of other societies, from the members, past 
members or the estates of the deceased members: 

Provided that the liability of past members and the estates of deceased members shall in all cases be 

subject to the provisions of section 27. 

CHAPTER XI 

APPEALS AND REVISION 

76.  Appeals.—(1)  Subject  to  the  provisions  of  section  77,  an  appeal  shall  lie  under  this  section 

against— 

(a) an order of the Registrar made under sub-section (2) of section 9 refusing to register a society; 

(b)  an  order  of  the  Registrar  made  under  sub-section  (4)  of  section  11  refusing  to  register  an 

amendment of the bye-laws of a co-operative society; 

(c) an order of the Registrar made under sub-section (1) of section 16; 

(d) a decision of a co-operative society refusing to admit any person as a member of the society 

who is otherwise duly qualified for membership under the bye-laws of the society; 

(e) a decision of a co-operative society expelling any of its members; 

(f)  an  order  of  the  Registrar  removing  the  committee  of  a  co-operative  society  made  under   

section 32; 

(g)  an  order  made  by  the  Registrar  under  section  57  apportioning  the  costs  of  an  enquiry  held 

under section 55 or an inspection made under section 56; 

(h) any order of surcharge under section 59; 

(i) any decision or award made under section 61; 

(j) an  order  made  by  the Registrar  under  section  63  directing  the  winding  up of  a  co-operative 

society; 

(k) any order made by the liquidator of a co-operative society in exercise of the powers conferred 

on him by section 67; 

(l) any order made under section 73. 

26 

 
(2)  An  appeal  against  any  decision  or  order  under  sub-section  (1)  shall  be  made  within  sixty  days 

from the date of the decision or order— 

(a) if the decision or order falls under clause (g), (h), (i) or (l) of sub-section (1), to the Tribunal; 

(b) if the decision or order falls under clause (f), to the Lieutenant-Governor; 

(c)  in  any  other  case,  to  the  Lieutenant-Governor  or  the  Registrar  according  as  the  decision  or 

order was made by the Registrar or any other person. 

(3) No appeal shall lie under this section from any decision or order made by the Registrar in appeal. 

77. No appeal or revision in certain cases.—Notwithstanding anything contained in this Act, where 

with the previous sanction in writing or on requisition of the Reserve Bank,— 

(i) a co-operative bank is being wound up; or 

(ii) in respect of which a scheme of amalgamation or reorganisation is given effect to; or 

(iii) in respect of which an order for the supersession of the committee and the appointment of an 

administrator therefor has been made, 

no appeal, revision or review thereagainst shall lie or be permissible, and the sanction or requisition of the 
Reserve Bank shall not be liable to be called in question. 

78.  Delhi  Co-operative  Tribunal.—(1)  The  Lieutenant-Governor  shall  constitute  a  Tribunal  to  be 
called  the  Delhi  Co-operative  Tribunal  to  exercise  the  functions  conferred  on  the  Tribunal  by  or  under 
this Act. 

(2) The Tribunal shall consist of not more than three members possessing such qualifications as may 

be prescribed. 

(3) Any vacancy in the membership of the Tribunal shall be filled by the Lieutenant-Governor. 

(4) Subject to the previous approval of the Lieutenant-Governor, the Tribunal shall frame regulations 
consistent with the provisions of this Act and the rules made thereunder, for regulating its procedure and 
the disposal of its business. 

(5) The regulations made under sub-section (4) shall be published by the Lieutenant-Governor in the 

Delhi Gazette. 

(6) The Tribunal may call for and examine the record of any proceeding, in which an appeal lies to it, 
for the purpose of satisfying itself as to the legality or propriety of any decision or order passed and if in 
any case it shall appear to the Tribunal that any such decision or order should be modified, annulled or 
reversed, the Tribunal may pass such order thereon as it may deem fit. 

(7) An order passed in appeal under section 76 or in revision under sub-section (6) of this section or 
in  review  under  section  79  by  the  Tribunal  shall  be  final  and  conclusive,  and  shall  not  be  called  in 
question in any civil or revenue court. 

Explanation.—The Tribunal hearing an appeal under this Act shall exercise all the powers conferred 
upon  an  appellate  court  by  section  97  of,  and  Order  XLI  of  the  First  Schedule  to,  the  Code  of  Civil 
Procedure, 1908 (5 of 1908). 

79. Review of orders of Tribunal.—(1) The Tribunal may either on the application of the Registrar, 
or  on  the  application  of  any  party  interested,  review  its  own  order  in  any  case,  and  pass  in  reference 
thereto such order as it thinks just: 

Provided  that  no  such  application  made  by  the  party  shall  be  entertained  unless  the  Tribunal  is 
satisfied  that  there  has  been  the  discovery  of  new  and  important  matter  of  evidence,  which  after  the 
exercise of due diligence was not within the knowledge of the applicant or could not be produced by him 
at the time when its order was made or that there has been some mistake or error apparent on the face of 
the record, or for any other sufficient reason: 

27 

 
Provided  further  that  no  such  order  shall  be  varied  or  revised  unless  notice  has  been  given  to  the 

parties interested to appear and be heard in support of such order. 

(2)  An  application for  review  under  sub-section (1)  by  any  party  shall  be  made  within  ninety  days 

from the date of communication of the order of the Tribunal. 

80. Revision.—Subject to the provisions of section 77, the Lieutenant-Governor may, suo motu or on 
the application of a party to a reference, call for and examine the record of any proceedings in which no 
appeal lies to the Lieutenant-Governor under section 76 (not being any proceedings in which an appeal 
lies to the Tribunal) for the purpose of satisfying himself as to the legality and propriety of any decision 
or  order  passed  and  if  in  any  case  it  shall  appear  to  him  that  any  such  decision  or  order  should  be 
modified, annulled or revised, he may pass such order thereon as he may deem fit. 

81.  Interlocutory  orders.—Where  an  appeal  is  made  under  section  76  or  where  the  Tribunal  or   

Lieutenant-Governor calls for the record of a case under section 78 or section 80, the appellate authority 
or the Tribunal or Lieutenant-Governor, as the case may be, may, in order to prevent the ends of justice 
being  defeated,  make  such  interlocutory  order,  including  an  order  of  stay,  pending  the  decision  of  the 
appeal or revision as such authority or the Tribunal or Lieutenant-Governor may deem fit. 

CHAPTER XII 

OFFENCES AND PENALTIES 

82.  Offences.—(1)  Any  person  other  than  a  co-operative  society  carrying  on  business  under  any 
name or title of which the word “co-operative”, or its equivalent in any Indian language is part, without 
the sanction of the Lieutenant-Governor shall be punishable with fine which may extend to two hundred 
rupees and in the case of a continuing breach with a further fine which may extend to five hundred rupees 
for every day during which the breach is continued after conviction for the first such breach. 

(2) Any member or past member or the nominee, heir or legal representative of a deceased member of 
a co-operative society who contravenes the provisions of sections 36 and 37 by disposing of any property 
in respect of which the society is entitled to have a first charge under that section or do any other act to 
the prejudice of such claim, shall be punishable with fine which may extend to five hundred rupees. 

(3)  A  co-operative  society  or  an  officer  or  member  thereof  wilfully  making  a  false  return  or 
furnishing  false  information,  or  any  person  wilfully  or  without  any  reasonable  excuse  disobeying  any 
summons,  requisition  or  lawful  written  order  issued  under  the  provisions  of  this  Act  or  wilfully  not 
furnishing any information required from him by a person authorised in this behalf under the provisions 
of this Act, shall be punishable with fine which may extend to two hundred rupees. 

(4)  Any  employer  who,  without  sufficient  cause,  fails  to  pay  to  a  co-operative  society  the  amount 
deducted by him under section 44 within a period of fourteen days from the date on which such deduction 
is made shall, without prejudice to any action that may be taken against him under any law for the time 
being in force be punishable with fine which may extend to five hundred rupees. 

(5) Any officer or custodian who wilfully fails to hand over custody of books, records, cash, security 
and other property belonging to a co-operative society of which he is an officer or custodian, to a person 
entitled under section 33, 53, 54, 55 or 66 shall be punishable with fine which may extend to two hundred 
rupees and in the case of a continuing breach with a further fine which may extend to five hundred rupees 
for every day during which the breach is continued after conviction for the first such breach. 

(6) Any person who fraudulently acquires or abets in the acquisition of any such property which is 
subject  to  a  charge  under  sections  36  and  37  shall  be  punishable  with  fine  which  may  extend  to  two 
hundred rupees. 

83. Cognizance of offence.—(1) No court inferior to that of a magistrate of the first class shall try 

any offence under this Act. 

(2)  No  prosecution shall be  instituted  under this  Act without the previous  sanction  of  the  Registrar 
and such sanction shall not be given without giving to the person concerned a reasonable opportunity to 
represent his case. 

28 

 
84. Address of societies.—Every co-operative society shall have an address registered in the manner 
prescribed to which all notices and communications may be sent, and shall send to the Registrar notice of 
every change thereof within thirty days of such change. 

85. Copy of Act, rules and bye-laws, etc., to be open to inspection.—Every co-operative society 
shall keep a copy of this Act, the rules and its bye-laws and also a list of its members, open to inspection 
free of charge at all reasonable times at the registered address of the society. 

86. Prohibition against the use of the word “co-operative”.—No person other than a co-operative 
society shall trade or carry on business under any name or title of which the word  “co-operative” or its 
equivalent in any Indian language is part: 

Provided that nothing in this section shall apply to the use by any person or his successor-in-interest 
of any name or title under which he carried on business at the date on which the Co-operative Societies 
Act, 1912 (2 of 1912), came into operation. 

87.  Power  to  exempt  societies  from  conditions  as  to  registration.—Notwithstanding  anything 
contained  in  this  Act,  the  Lieutenant-Governor  may,  by  general  or  special  order  and  subject  to  such 
conditions,  if  any,  as  he  may  impose,  exempt  any  society  or  class  of  societies  from  any  of  the 
requirements of this Act as to registration. 

88. Power to exempt co-operative societies from provisions of the Act.—The Lieutenant-Governor 
may, by general or special order, to be published in the Delhi Gazette, exempt any co-operative society or 
any  class  of  co-operative  societies  from  any  of  the  provisions  of  this  Act,  or  may  direct  that  such 
provisions shall apply to such societies or class of societies with such modifications as may be specified 
in the order. 

89. Liquidator to be public servant.—Any person appointed as liquidator under the provisions of 
this Act or the rules shall be deemed to be a public servant within the meaning of section 21 of the Indian 
Penal Code (45 of 1860). 

90. Notice necessary in suits.—No suit shall be instituted against a co-operative society or any of its 
officers in respect of any act touching the business of the society until the expiration of three months next 
after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, 
the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint 
shall contain a statement that such notice has been so delivered or left. 

91. Companies Act not to apply.—The provisions of the Companies Act, 1956 (1 of 1956), shall not 

apply to co-operative societies. 

92. Saving of existing societies.—(1) Every society now existing which has been registered under the 

Co-operative  Credit  Societies  Act,  1904  (10  of  1904)  or  under  the  Co-operative  Societies                       
Act,  1912  (2  of  1912),  or under  the  Bombay  Co-operative  Societies  Act,  1925  (Bom.  7  of  1925)  as  in 
force in the Union territory of Delhi, shall be deemed to be registered under the corresponding provisions 
of this Act, and its bye-laws shall, so far as the same are not inconsistent with the express provisions of 
this Act, continue in force until altered or rescinded. 

(2)  All  appointments,  rules  and  orders  made,  notifications  and  notices  issued  and  suits  and  other 
proceedings instituted under the said Acts shall, so far as they are consistent  with the provisions of this 
Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order 
made cancelling the registration of a society shall be deemed, unless the society has already been finally 
liquidated, as an order issued under section 63 for its being wound up. 

93. Bar of jurisdiction of courts.—(1) Save as provided in this Act, no civil or revenue court shall 

have any jurisdiction in respect of— 

(a) the registration of a co-operative society or its bye-laws or of an amendment of a bye-law; 

(b) the removal of a committee; 

(c) any dispute required under section 60 to be referred to the Registrar; and 

(d) any matter concerning the winding up and the dissolution of a co-operative society. 

29 

 
(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the 
business of such society shall be proceeded with or instituted against, the liquidator as such or against the 
society  or  any  member  thereof,  except  by  leave  of  the  Registrar  and  subject  to  such  terms  as  he  may 
impose. 

(3) Save as provided in this Act, no order, decision or award made under this Act shall be questioned 

in any court on any ground whatsoever. 

94. Powers of civil court.—(1) In exercising the functions conferred on him by or under this Act, the 
Registrar, the arbitrator or any other person deciding a dispute under section 61 and the liquidator of a    
co-operative society or person entitled to audit, inspect or hold an inquiry and the Tribunal, shall have all 
the powers of a civil court, while trying a suit, under the Code of Civil Procedure, 1908 (5 of 1908), in 
respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of any document; 

(c) proof of facts by affidavits; and 

(d) issuing commissions for examination of witnesses. 

(2)  In  the  case  of  an  affidavit,  any  officer  appointed  by  the  Registrar,  the  arbitrator  or  any  other 
person deciding a dispute and the liquidator or the Tribunal, as the case may be, may administer the oath 
to the deponent. 

95. Indemnity.—No suit, prosecution or other legal proceedings shall lie against the Registrar or any 
person  subordinate  to  him  or  acting  on  his  authority  in  respect  of  anything  in  good  faith  done  or 
purporting to have been done under this Act. 

96.  Qualifications,  remuneration  and  other  conditions  of  service  of  employees  of  co-operative 
societies.—(1) The Lieutenant-Governor shall, as soon as may be after the commencement of this Act, 
constitute  a  common  service  comprising  of  officers  and  other  employees  of  different  classes  of              
co-operative  societies  and  shall  determine  the  number  and  designation  of  such  officers  and  other 
employees. 

(2)  The  Lieutenant-Governor  shall  make  rules  regulating  the  qualifications,  remuneration, 
allowances,  recruitment  and  other  conditions  of  service  of  such  officers  and  other  employees  of  the       
co-operative societies. 

97. Rules.—(1) The Lieutenant-Governor may, for any co-operative society or class of co-operative 

societies, make rules to carry out the purposes of this Act. 

(2)  In  particular,  and  without  prejudice  to  the  generality  of  the  foregoing  power,  such  rules  may 

provide for all or any of the following matters, namely:— 

(i) the maximum number of shares or portion of the capital of a co-operative society which may, 

subject to the provisions of section 6, be held by a member; 

(ii) the form to be used and the conditions to be complied with in the making of applications for 

the registration of a society and the procedure in the matter of such applications; 

(iii)  the  procedure  and  conditions  for  change  in  the  form  and  extent  of  the  liability  of  a               

co-operative society; 

(iv) the matters in respect of which the society may or shall make bye-laws and for the procedure 
to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to 
such making, alteration or abrogation; 

(v)  the  conditions  to  be  complied  with  by  persons  applying  for  admission  or  admitted  as 
members, for the election and admission of members, and for the payment to be made and the interest 
to be acquired before the exercise of the right of membership; 

(vi) the manner in which funds may be raised by means of shares and debentures or otherwise; 

30 

 
(vii) for general meeting of the members and for the procedure at such meetings and the powers 

to be exercised by such meetings; 

(viii)  the  prohibitions  and  restrictions  subject  to  which  societies  may  transact  business  with 

persons who are not members; 

(ix)  the  proportion  of  individuals  and  societies  in  the  constitution  of  the  committee  of 
management and the general body of a co-operative society of which another co-operative society is a 
member; 

(x) the determination of co-operative societies or class of co-operative societies for the purpose of 
sub-section  (1)  of  section  31,  and  subject  to  the  provisions  of  the  said  section,  the  election  and 
nomination of members of committees, the appointment or election of officers and the suspension and 
removal of the members and other officers, and for the powers to be exercised and the duties to be 
performed by the committees and other officers; 

(xi)  the  area  of  agricultural  land,  the  conditions  required  to  be  fulfilled  for  the  purpose  of          

sub-section (6) of section 31; 

(xii)  the  appointment  and  regulation  of  work  entrusted  to  person  or  persons  replacing  the 

committee in pursuance of section 32; 

(xiii) prohibiting a co-operative society from electing a defaulting member on its committee or to 

be its representative; 

(xiv) the accounts and books to be kept by a co-operative society and the audit of such accounts 

and  the  charges,  if  any,  to  be  made  for  such  audit,  and  for  the  periodical  publication  of  a            
balance-sheet showing the assets and liabilities of a co-operative society; 

(xv) the returns to be submitted by a co-operative society to the Registrar, the persons by whom 
and  the  form  in  which  such  returns  shall  be  submitted  and  in  case  of  failure  to  submit  any  such 
returns for the levy of expenses of preparing it; 

(xvi) the persons by whom and the form in which copies of the entries in books of societies may 

be certified and for the charges to be levied for the supply of such copies; 

(xvii)  the  formation  and  maintenance  of  a  register  of  members  and  where  the  liability  of  the 

members is limited by shares, of a register of shares; 

(xviii) the appointment of an arbitrator to decide disputes; 

(xix) the procedure to be followed in proceedings before the Registrar, arbitrator or other persons 
deciding disputes including the appointment of a guardian for a party to the dispute who is a minor or 
who, by reason of unsoundness of mind or mental infirmity, is incapable of protecting his interests, 
and the levy of the expenses relating to such proceeding; 

(xx)  the  withdrawal  and  expulsion  of  members  and  for  the  payments,  if  any,  to  be  made  to 
members  who  withdraw  or  are  expelled  and  for  the  liability  of  past  members  and  of  the  estates  of 
deceased members; 

(xxi) the mode in which the value of a deceased member’s share or interest shall be ascertained 

and for the nomination of a person to whom such share or interest may be paid or transferred; 

(xxii)  the  payments  to  be  made  and  conditions  to  be  complied  with  by  members  applying  for 
loans,  the  period for  which  any  loans  may  be  made and the  maximum  amount  may  be  lent, to any 
member; 

(xxiii) the formation and maintenance of reserve funds and other funds and the objects to which 
such funds may be applied, and for the investment of any funds under the control of a co-operative 
society; 

(xxiv) the extent to which a co-operative society may limit the number of its members; 

31 

 
(xxv)  the  conditions  under  which  profits  may  be  distributed  to  the  members  of  a  co-operative 
society  with  unlimited  liability,  and  the  maximum  rate  of  dividend  which  may  be  paid  by  co-
operative societies; 

(xxvi) the calculation and writing off of bad debts by co-operative societies; 

(xxvii)  the  procedure  to  be  followed  by  a  liquidator  appointed  under  section  66  in  respect  of 

provisions of section 67; 

(xxviii) the procedure to be followed in presenting and disposing of appeals under this Act; 

(xxix) the form of orders referred to in sections 71 and 72; 

(xxx) qualifications of the members of the Tribunal; 

(xxxi) the issue and service of processes and for proof of service thereof; 

(xxxii) the manner of effecting attachment; 

(xxxiii) the custody, preservation and sale of property under attachment; 

(xxxiv) the investigation of claims by persons other than the defaulter to any right or interest in 

the attached property, and for the postponement of the sale pending such investigation; 

(xxxv) the immediate sale of perishable articles; 

(xxxvi)  the  inspection  of  documents  in  the  office  of  the  Registrar  or  of  any  other  officer  or 

authority and the levy of fees for granting certified copies of the same; 

(xxxvii)  the  terms  and  conditions  on  which  the  Central  Government  may  make  share-capital 
contribution or give assistance, financial or other, to societies and the terms and conditions on which 
the Central Government may guarantee the payment of the principal or interest on debentures issued 
by societies or loans raised by them; 

(xxxviii) the manner in which funds may be raised by a society or a class of societies by means of 

shares or debentures of otherwise and the quantum of funds so raised; 

(xxxix) for giving reasonable notice of the charge under sections 36 and 37; 

(xl)  qualifications,  remuneration,  allowances  and  recruitment  and  the  conditions  of  service  of 

officers and other employees of a society or class of societies; 

(xli)  the  method  of  communicating  or  publishing  any  order,  decision  or  award  required  to  be 

communicated or published under this Act or the rules. 

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
to the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

98. Repeal and savings.—On the day on  which the Delhi Co-operative Societies Act, 1972 comes 
into  force,  the  Bombay  Co-operative  Societies  Act,  1925  (Bom.  7  of  1925)  as  in  force  in  the  Union 
territory of Delhi shall stand repealed: 

Provided that the repeal shall not affect— 

(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or 

(b)  any  right,  privilege,  obligation,  or  liability  acquired,  accrued  or  incurred  under  the  Act  so 

repealed; or 

32 

 
 
 
(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the 

Act so repealed; or 

(d)  any  investigation,  legal  proceeding  or  remedy  in  respect  of  any  such  right,  privilege, 

obligation, liability, penalty, forfeiture of punishment as aforesaid, 

and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any 
such penalty, forfeiture or punishment may be imposed as if that Act has not been repealed. 

33 

 
 
